Gold Settles $24.60 Higher …($1271.70)

Today's Gold session produced another all-time High ($1276.50) and covered a trading range of $30.50.The initial rally was fueled by lower Gold production news from Russia.

The news indicated a 3% decline for the first 7 months of 2010. Normally Gold bugs are not concerned with supply indicators but with the recent physical buying demand it is a valid concern.
The Gold continued to rally off of weaker Industrial Production data out of the European Union. Production rose 7.1% year over year however, this was less than the 8% projection. This along with the United Kingdom higher than expected Consumer Price Index sparked inflationary worries. Savvier investors realize that Gold and Silver are a safer haven in times of economic crisis. They have a history of retaining value better than most commodities.

As the market rallied it proceeded to take out key resistance levels as well as touching off stop-loss orders on its way to new all-time highs. Also remember the month of September is a historically a very strong month for Gold. This is the month the Wedding and Festival seasons begin in India and China. The demand for physical Gold during September through December is insatiable.

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